12/20/2008

Financial Times of London is about the only publication that I see that mentions this

While the media focuses on the weak economy for why OPEC production cuts haven't raised prices, the FT mentions an extremely important point: OPEC isn't a very effective cartel. The FT story is here:

Opec pledged to cut output by 2.2m barrels a day, on top of cuts totalling 2m b/d agreed earlier this year. But doubts that the cartel’s members would fully comply with the agreement and concerns about the outlook for demand ensured downward pressure on oil prices. . . .